Teri,
Bravo, your argument makes sense to me even if the market doesn't.
At some point, someone is going to have to "Pay the Piper" (remember
the Pied Piper childrens story?) for the over-valuation of many pricey
stocks with unsupported fundamentals. This market has no basis, IMO.
The smart investors will skim the cream off the top and depart,
those that hold will be the losers in the long run. Once the mania is gone and the funds/institutional investors divest their holdings all
that will be left is the empty shell and bewildered investors. There
has to be a VALUE association to make a company have any
substantial worth. The internet stocks have fueled this latest rally, when they reach critical mass there will be a market implosion. I can't believe that anyone will hold many of the over-inflated stocks
trading at 30+ earnings for very long if the value isn't there to
support the price. Case in point, look at what happened to AMAT last
year when it reached $108, the value wasn't there and it corrected
as investors took the quick profits from the run up. The same will
happen with the internet stocks and the semi's that can't support
the fundamentals, IMO.
Today the market vented a little steam, this was a good thing, but it
is still way over pressurized, if it doesn't release more there will
be a real ugly correction of "biblical" proportions in the not to
distant future.
Just my opinion,
BB
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